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China may want to replace the US as a reserve currency... https://foreignpolicy.com/2020/08/21/dollar-global-reserve-currency-yuan-china/ https://foreignpolicy

China may want to replace the US as a reserve currency... https://foreignpolicy.com/2020/08/21/dollar-global-reserve-currency-yuan-china/ https://foreignpolicy.com/2020/08/21/dollar-global-reserve-c... But wanting and doing are different things. Part of the dollar's status as a reserve currency is not just what you can buy with dollars (which is a lot more than RMB right now), but the fact that it is backed by a political, economic and military institutional framework which has been by and large consistent for more than 150 years. Maybe we should hold off on declaring the USD dead till the day China stops throwing random teenagers in black site jails with no access to outside counsel or due process. https://www.youtube.com/watch?v=G7s3GK9T09c https://www.youtube.com/watch?v=G7s3GK9T09c In short, imagine you wake up tomorrow and find yourself in the 0.001%. Now as yourself, does that 0.001% version of yourself want to live in Hong Kong/Beijing/Taipei or NYC/LA/SF. Obvious. At least if you want to be able to, you know, talk about stuff openly. And really, really rich people, well they tend to have a lot of opinions...

bubbleRefuge 6y ago
I would posit that the current state is good and we should in fact further optimize it. Imports are a benefit and exports are cost in real terms. The point of an economy is to maximize consumption. Its costs labor, raw materials, and even pollution to produce IPhones and Mercedez Benz. The problem is everyone wants to export and only America wants to import. Is that a bad thing for America ? I don't think so. If you give me an Iphone and I give you a piece of paper, or, better yet, a debit on a spreadsheet, who is getting the better deal here ? Why do you want to horde that piece of paper? You can't eat it or use it for shelter. So why not have fed policy that optimizes this rather than calling our trade partners currency manipulators . Certainly we need to protect industries that are vital to national security and that list has increased with the pandemic. Wouldn't put iPhones on that list.
- sudosysgen 6y ago
  The issue is that this creates conditions in which there is no incentive for the US economy to develop the infrastructure necessary for large scale manufacturing, and that without a large manufacturing advantage national security cannot be guaranteed.
  - bubbleRefuge 6y ago
    Agreed. We have to have manufacturing insofar as its needed for national security and this should be subsided by the fed to provide the incentives which kind of is the state we are in, isn't it ? Boeing, General Dynamics, Lockheed, et al. It doesn't need to be internationally competitive in terms of price. Again, we should optimize our trade advantages, not condemn it. It a case of financial literacy in the political policy and financial press.
    - sudosysgen 6y ago
      If all you want to fight are small wars abroad, then sure. If you want to be ready against a peer enemy, the entire economy needs to have large manufacturing capacity, or you will get buried by your enemy.
maerF0x0 6y ago
Ray dalio seems to think that China will take over the dominant empire / reserve currency soon https://www.linkedin.com/pulse/changing-world-order-ray-dalio-1f/ https://www.linkedin.com/pulse/changing-world-order-ray-dali...
- bassman9000 6y ago
  China's solid rule of law will surely be a boon to all.
  - maerF0x0 6y ago
    I hope that is "/s"
    - bassman9000 6y ago
      It was. Sad it has to be clarified.
deleted 6y ago
[deleted]

bubbleRefuge 6y ago

I would posit that the current state is good and we should in fact further optimize it. Imports are a benefit and exports are cost in real terms. The point of an economy is to maximize consumption. Its costs labor, raw materials, and even pollution to produce IPhones and Mercedez Benz. The problem is everyone wants to export and only America wants to import. Is that a bad thing for America ? I don't think so. If you give me an Iphone and I give you a piece of paper, or, better yet, a debit on a spreadsheet, who is getting the better deal here ? Why do you want to horde that piece of paper? You can't eat it or use it for shelter. So why not have fed policy that optimizes this rather than calling our trade partners currency manipulators . Certainly we need to protect industries that are vital to national security and that list has increased with the pandemic. Wouldn't put iPhones on that list.

sudosysgen 6y ago
The issue is that this creates conditions in which there is no incentive for the US economy to develop the infrastructure necessary for large scale manufacturing, and that without a large manufacturing advantage national security cannot be guaranteed.
- bubbleRefuge 6y ago
  Agreed. We have to have manufacturing insofar as its needed for national security and this should be subsided by the fed to provide the incentives which kind of is the state we are in, isn't it ? Boeing, General Dynamics, Lockheed, et al. It doesn't need to be internationally competitive in terms of price. Again, we should optimize our trade advantages, not condemn it. It a case of financial literacy in the political policy and financial press.
  - sudosysgen 6y ago
    If all you want to fight are small wars abroad, then sure. If you want to be ready against a peer enemy, the entire economy needs to have large manufacturing capacity, or you will get buried by your enemy.

maerF0x0 6y ago

Ray dalio seems to think that China will take over the dominant empire / reserve currency soon https://www.linkedin.com/pulse/changing-world-order-ray-dalio-1f/ https://www.linkedin.com/pulse/changing-world-order-ray-dali...

bassman9000 6y ago
China's solid rule of law will surely be a boon to all.
- maerF0x0 6y ago
  I hope that is "/s"
  - bassman9000 6y ago
    It was. Sad it has to be clarified.

deleted 6y ago

[deleted]